A state audit review recently deduced that a financial slip-up at the Indian River Marina accounted for more than $162,000 in questionable and undocumented transactions between May 31, 2005, and Dec. 31, 2006. Poor financial bookkeeping, illicit sales and rental rates, and inappropriate discounts were among the concerns in the review made by state Auditor R. Thomas Wagner Jr.
An investigation of the marina, a division of the Department of Natural Resources and Environmental Control (DNREC), was conducted with review from the Office of Auditor of Accounts (AOA).
Incorrect timekeeping, inappropriate SuperCard (a Visa card program in the state of Delaware through the Department of Administrative Services, contracted with PNC Bank) transactions, discounted fuel charges, inconsistent dockage and storage rates, restrictions in software capability and discrepancy of employee cottage rentals were all given through consideration for revision within the review.
Of 165 fuel receipts, 92 could not be documented, totaling $37,351, as well as 27 out of 35 credits, amounting to another $43,339. Contracts for storage and dockage were inconsistent with the marina rates, resulting in a difference of roughly $51,700 in lost state revenue.
According to Wagner’s audit, AOA determined that “the marina does not have the internal control structure in place to ensure revenue and expenditure transactions are processed in compliance with the State of Delaware Budget and Accounting Manual.”
These findings led to the dismissal of former marina manager Gary King, who supervised the marina during the time in question. The position is currently held by Ken Farrall, park administrator and acting manager of the marina.
Wagner’s recommendations made in response of the findings include the following:
• The marina maintain adequate supporting documents for all financial transactions;
• The marina refrain from showing preferential customer treatment by discounting fuel charging privileges;
• The marina comply with the established rate schedule to avoid showing preferential treatment to certain customers;
• The marina tighten the controls surrounding the software in order to restrict users’ access and minimize the effects of the software limitations;
• The marina and DNREC develop a tracking system for employee reservations of marina cottages and the subsequent receipt of payment for those reservations; and
• The marina tighten controls over SuperCard transactions.
“DNREC will implement the findings that were made,” said Wagner. “They’ve always been good to work with on these things. We haven’t gone back in yet, but we will.”
Wagner declined comment on the legitimacy of King’s firing based on the now-completed findings, citing it as “a personnel decision.”
Indian River Marina, a site that had previously been run under private ownership for several decades, was purchased by the state of Delaware in 1971. “DNREC is a big organization with a lot of different functions and a lot of independent locations,” said Wagner. “Most marinas are privately owned. It was a big debate, but it’s a decision we have to live with.”